WHEN: Today, Thursday, November 10th
WHERE: CNBC's "Squawk Box"
Following are excerpts from the unofficial transcript of a CNBC interview with Stanley Druckenmiller, Duquesne Capital Founder, on CNBC's "Squawk Box" (M-F, 6AM-9AM ET) today, Thursday, November 10th. Following is a link to the story on CNBC.com: http://www.cnbc.com/2016/11/10/stanley-druckenmiller-quite-quite-optimistic-on-the-economy.html. Following are links to the video on CNBC.com: http://video.cnbc.com/gallery/?video=3000566971 and http://video.cnbc.com/gallery/?video=3000566972.
All references must be sourced to CNBC.
DRUCKENMILLER ON TRYING DEREGULATION
TO ME IT'S BEEN VERY FRUSTRATING TO WATCH MONETARY RADICALISM THE LAST 4 YEARS BE THE ONLY THING ADDRESSING OUR ISSUES. AND EVERY TIME I'VE TALKED ANYWHERE I SAID COULD WE JUST TRY DEREGULATION AND TAX REFORM? COULD WE JUST TRY IT? AND IT LOOKS VERY LIKELY WE'RE GOING TO GET THAT.
DRUCKENMILLER ON BEING OPTIMISTIC
THIS ECONOMY IS SO OVERREGULATED AND PEOPLE ARE JUST DROWNING IN RED TAPE THAT THE REMOVAL OF THAT, AND THEN I'M EXPECTING SERIOUS TAX REFORM WITH CUTS TO THE CORPORATE TAX RATE, MAYBE A BLENDED RATE OF UNDER 10% TO REPATRIATE CAPITAL. SO I'M QUITE, QUITE OPTIMISTIC ON THE ECONOMY. AS ALWAYS OPEN MINDED, BUT VERY OPTIMISTIC.
DRUCKENMILLER ON JANET YELLEN
I ABSOLUTELY WOULD NOT REPLACE HER IMMEDIATELY. I THINK SHE SHOULD SERVE OUT HER TERM. I BELIEVE IN THE INDEPENDENCE OF THE FED. I THINK IT'S EXTREMELY IMPORTANT THAT THAT INSTITUTIONAL INTEGRITY BE MAINTAINED. BUT FRANKLY, I THINK THE MARKET IS GOING TO FORCE THIS. THE MARKET IS GOING TO PUSH THEM TO RAISE INTEREST RATES IF MY HOPEFUL SCENARIO ON THE ECONOMY TURNS OUT TO BE RIGHT.
DRUCKENMILLER ON DEBT
IT DEFINITELY BECOMES MORE EXPENSIVE, BUT AGAIN, IT'S A – WHAT WE'VE BEEN DOING IS TRANSFERRING MASSIVE WEALTH FROM HARD-WORKING AMERICANS WHO SAVED TO THE GOVERNMENT. THEY THOUGHT THEY WERE GOING TO GET 4%, 5% AND THEY'VE BEEN GETTING ZERO. WHAT THIS WILL DO – IT'S TRUE. THE GOVERNMENT BILL WILL GO UP FAIRLY DRAMATICALLY IF INTEREST RATES RISE. BUT INCOMES WILL GO UP BECAUSE THAT MONEY WILL SIMPLY BE TRANSFERRED TO THE SAVERS WHO THE REASON THEY SAVED THE MONEY IS THEY EXPECTED THAT RETURN OVER THE LONG-TERM.
DRUCKENMILLER ON DIVISIVENESS
IT'S SCARY TO SEE THE DIVISIVENESS. BUT HISTORY HAS A VERY FUNNY WAY OF PLAYING OUT. AND I WOULD NOT BE SURPRISED IF WE'RE LOOKING AT THE ABSOLUTE PEAK OF THE DIVISIVENESS. AND WHILE THESE ISSUES THAT WE ALL CARE ABOUT IN THE CITIES AND ARE PARAMOUNT IMPORTANT TO US, IF YOU'RE LIVING IN THE MIDWEST AND YOU DON'T HAVE A JOB AND YOU CAN'T PUT FOOD ON THE TABLE FOR YOUR KIDS AND MAYBE WITH TAX REFORM AND DEREGULATION, IF WE CAN GET THIS THING GOING SOME, WE CAN ADDRESS WHAT I THINK HAS BECOME A SHIFT TOO FAR TOWARD URBAN WEALTH VERSUS THE WHOLE RURAL AREAS.
DRUCKENMILLER ON TRUMP POLICY
I'M JUST HOPING THAT ECONOMIC POLICY IS DEFERRED TO MIKE PENCE AND PAUL RYAN IN TERMS OF CIVIC DETAILS AND POLICY. PAUL RYAN HAS GOT A PLAN CALLED 'A BETTER WAY.' I ENCOURAGE ALL YOUR VIEWERS TO READ IT. IT'S A SIMPLE PAMPHLET. IT REMINDS ME OF THE CONTRACT WITH AMERICA IN THE '90s. IT'S A SPECIFIC PLAN OF HOW TO DO DEREGULATION, HOW TO REPLACE – NOT JUST GET RID OF – BUT REPLACE OBAMACARE. IT'S GOT TAX REFORM IN THERE. IF THAT STUFF GETS IMPLEMENTED, I DON'T REALLY CARE WHO'S IN THE REST OF THE CABINET.
DRUCKENMILLER ON GOLD
I SOLD ALL MY GOLD THE NIGHT OF THE ELECTION. ALL THE REASONS I HAVE OWNED IT FOR THE LAST COUPLE YEARS, IT SEEMS TO ME THEY MAY BE ENDING. AND BY THE WAY, THEY'RE ENDING GLOBALLY. THIS IS, YOU KNOW, TERESA MAY. THIS IS A WORLDWIDE PHENOMENON WE'RE LOOKING AT. THE LAST PEOPLE ON THE CABOOSE OF COURSE ARE THE EUROCRATS WITH THE HIGH PRIEST MARIO DRAGHI. BUT I THINK THEY'LL PROBABLY GET IT EVENTUALLY. THEY'LL BE DRAGGED KICKING AND SCREAMING.
DRUCKENMILLER ON INTEREST RATES
I THINK INTEREST RATES ARE GOING TO GO UP. I THINK THEY'RE GOING TO GO UP A LOT…I THINK IT'S JUST A MORE OPTIMISTIC VIEW ABOUT ECONOMIC GROWTH AND WHEN YOU HAVE ABSURD INTEREST RATE LEVELS AND YOU COMBINE IT WITH A CHANGE IN EXPECTATION ON ECONOMIC GROWTH, INTERESTE RATES HAVE TO GO UP AND I THINK THEY'RE GOING TO GO UP A LOT MORE WORLDWIDE.
DRUCKENMILLER ON ECONOMIC GROWTH
I BASICALLY HAVE A LARGE BET ON ECONOMIC GROWTH. HOW DO I DO THAT? I'M SHORT BONDS GLOBALLY. I'M SHORT BUBBLES, I'M SHORT BUNDS, I'M SHORT GILTS, I'M SHORT ITALIAN BONDS, I'M SHORT U.S. BONDS. THAT'S ALL REFLECTIVE OF NOT SOME DISASTER WITH DEFICITS BUT WITH STRONGER GROWTH. I LIKE THE SECTORS OF THE EQUITY MARKET THAT RESPOND TO GROWTH, VALUE AND MATERIALS. NOT THINGS LIKE STAPLES AND TRADITIONAL GROWTH STOCKS THAT DON'T RESPOND WITH THE ECONOMY. AND I REALLY LIKE THE DOLLAR. PARTICULARLY AGAINST THE EURO.
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